The increase in revenue in 2019 was due to the efficiency in the rental collection recoveries. The other factor is the renewals of leases on a higher percentage of current rentals. KCT Mall management insisted that their leasing agent negotiate renewals above the15% benchmark.
The decrease in revenue in 2020 was mainly attributed to the start of lockdown and Covid-19 restriction. Many of the Tenants requested rental relief and discounts because their shops were forced to be closed. KCT suffered losses on rental income and promotions revenue that were uncontrollable due to the economic crises that the entire country experienced. We also had Tenants that did not renew their leases due to unfavourable trading circumstances.
In 2021 our Tenants slowly recovered from the impact of Covid-19 lockdown and gradually repaid their rental reliefs granted in 2020. We encouraged our Tenants to pay extra on their rental to cover their arrears.
- Is to maintain, protect and improve the conditions of immovable assets, its infrastructure and natural environment which we are responsible
- To contribute towards the property value of KCT Mall positively whilst achieving benefits for our valued tenants, shoppers, and communities.
- During the reporting period KCT mall management staff responsibly delivered a safe, clean and fully compliant property with facilities alongside; operations aimed at reducing occurrences of failures. Whilst ensuring satisfactory functioning and productivity, we extend the life of building structures with its finishes, plant and equipment to enhance and improve the surrounding environmental performance.
Our management approach is to be actively involved in the day-to-day operations; such we have a hands-on approach with all activities. This approach affords KBD Retail Properties Management oversight, responsibility, and influence into all major decisions necessary for ongoing risk management as well as to ensure that not only to meet but outperform our clients (tenants, customers', and stakeholders' expectations).
The maintenance we outsource is embodied in KCT Group's vision admission. To strive to promote social, local economic empowerment through job creation at our facilities.
Our facilities management operations continued to perform well despite the COVID-19 restrictions. More focus was placed on health and safety activities like deep cleaning, fumigation and environmental control structured as routine activities. We impress operational efficiencies on routine and preventative maintenance activities to maximize the life cycles of assets, building fabric and mechanical & electrical infrastructure unabatedly throughCOVID-19 Lockdowns.
We employ local service providers to support local economic empowerment, manage and measure them on their service level agreements, covering hard, soft and support services. These companies are supported and provided with adequate technical and administrative assistance. Their service levels are constantly monitored within the cost of their services and agreements. The impact of our remodelling operations has positively benefitted locally (Khayelitsha) based service providers. Our service contracts are running on three-year contractual periods. Our service contractors' staff are recognised and acknowledged as part of maintenance teams who perform their tasks daily in the interest of preserving and caring for KCT Mall. The expense on local service providers is illustrated as per illustrated on following graphs.
To support water restrictions, we installed alternative water sources and water harvesting to provide water for landscaping as well as recycled water for our flushing toilets and urinals. Other areas of sustainability we service are the open area hardscapes such as power-hosing routine maintenance with water sourced from well points on site. We will introduce waste management concepts to reduce operational costs resulting from reduced waste. Waste generated at the KCT Mall precinct is collected and then sorted on site into recyclable and non-recyclable materials before being diverted to landfills including correct disposal of toxic material that may require specialist removal regimes. On-site recycling is outsourced as an income generator for the waste management service provider. light Emitting Diodes (LEDs) light fittings and energy saving devices were fitted on all buildings throughout the precinct. We installed LED perimeter lighting that are operated with day-light switches and further to this, have installed sensors in communal passages and in toilets to reduce electrical consumption. To save on operating costs, we manage the meter reading and all aspects of utility management. We are exploring proposals on renewal energy for overall electrical consumption of KCT Mall that will benefit all tenants.
Costs of maintenance benefitting Local Khayelitsha Entrepreneurs for the reporting period was R5 967 730.88